Govt allocates Rs 8,060 cr for 5 lakh projects

The Centre on Wednesday allocated Rs 8,060 crore under the Prime Minister's Employment Generation Programme (PMEGP) to set up five lakh projects during the Twelfth Plan period (2012-17).

“For the country as a whole, the outlay for the Twelfth Plan under the PMEGP has been kept at Rs 8,060 crore, which is 70 per cent higher than the allocation of 11th Plan for the scheme,” Minister of State (Independent Charge) for Micro, Small and Medium Enterprises (MSME) K H Muniyappa said. “This would create over 5 lakh entrepreneurs providing employment to over 35 lakh people,” he added.

The PMEGP  scheme aims at generating employment through setting up micro enterprises, including rural industrial units. Under the scheme, urban and rural entrepreneurs in the general category can avail a subsidy of 15 per cent and 25 per cent on the project cost.  In the case of weaker sections of society, a 25 per cent and 35 per cent subsidy is provided to urban and rural businessmen. 

The ministry has constituted a district-level advisory committee to be chaired by a Member of Parliament comprising 30 members. It will provide guidancefor implementation of the programme.